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Everyday commitments demand that we are up and running at all times. The world is becoming mobile just as we are, a...
Everyday commitments demand that we are up and running at all times. The world is becoming mobile just as we are, and Facebook is in for the chips. The world’s largest social network has reported its second quarter earnings, boasting new user growth and strong ad revenues that have caused Facebook shares to skyrocket.
Second quarter revenue brought Facebook $2.91 billion, $2.68 billion of which came from advertising. What's more interesting, is that 62% of the advertising revenue for Q2 2014 came from ads popping out on mobile devices. Facebook's profits in the second quarter went through the roof to $791 million, a 138% increase over last year's $333 million.
Facebook founder Mark Zuckerberg says, “We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”
As the world goes mobile, so have Facebook users. Facebook reports 1.32 billion monthly active users, 14% more than last year’s Q2 numbers. Mobile active users have increased by 31%-- that's 1.07 billion people checking out Facebook on their mobile devices.
Analysts claim that the shift toward smartphones and tablets is a winning strategy for the social network. And by winning, I mean lucrative. Facebook shares have soared to a record $75.05 per share in after-market trades, as compared to the company's market debut back in 2012, when shares were $38.
Facebook's numbers are great, and the company looks great, too, according to analyst Rob Enderle of Enderle Group in Silicon Valley. Enderle reckons that Facebook might see a push-back from advertisers because of what has been actually sold as opposed to what is being advertised.
Facebook's share of global digital advertising revenue last year accounted for 5.8%, and it is expected to rise to 8% by the end of 2014, according to industry tracker eMarketer.
During an earnings call, Zuckerberg said, "Our momentum remains especially strong on mobile.”